By the Deputy Chief, Consumer Policy Division, Consumer & Governmental Affairs Bureau:
1.
In this Order, we consider the complaints1 alleging that Quasar Communications
Corporation (QCC) changed Complainants’ telecommunications service providers without obtaining authorization and verification from Complainants in violation of the Commission’s rules.2 We conclude that QCC’s actions did result in unauthorized changes in Complainants’ telecommunications service providers and we grant Complainants’ complaints.
2.
In December 1998, the Commission released the Section 258 Order in which it
adopted rules to implement Section 258 of the Communications Act of 1934 (Act), as amended by the Telecommunications Act of 1996 (1996 Act).3 Section 258 prohibits the practice of

“slamming,” the submission or execution of an unauthorized change in a subscriber’s selection of a provider of telephone exchange service or telephone toll service.4 In the Section 258 Order, the Commission adopted aggressive new rules designed to take the profit out of slamming, broadened the scope of the slamming rules to encompass all carriers, and modified its existing requirements for the authorization and verification of preferred carrier changes. The rules require, among other things, that a carrier receive individual subscriber consent before a carrier change may occur.5 Pursuant to Section 258, carriers are absolutely barred from changing a customer's preferred local or long distance carrier without first complying with one of the Commission's verification procedures.6 Specifically, a carrier must: (1) obtain the subscriber's written or electronically signed authorization in a format that meets the requirements of Section 64.1130; (2) obtain confirmation from the subscriber via a toll-free number provided exclusively for the purpose of confirming orders electronically; or (3) utilize an independent third party to verify the subscriber's order.7
3.
The Commission also has adopted liability rules. These rules require the carrier
to absolve the subscriber where the subscriber has not paid his or her bill. In that context, if the subscriber has not already paid charges to the unauthorized carrier, the subscriber is absolved of liability for charges imposed by the unauthorized carrier for service provided during the first 30 days after the unauthorized change.8 Where the subscriber has paid charges to the unauthorized carrier, the Commission’s rules require that the unauthorized carrier pay 150% of those charges to the authorized carrier, and the authorized carrier shall refund or credit to the subscriber 50% of all charges paid by the subscriber to the unauthorized carrier.9 Carriers should note that our actions in this order do not preclude the Commission from taking additional action, if warranted, pursuant to Section 503 of the Act.10
4.
We received Complainants’ complaints alleging that Complainants’
telecommunications service providers had been changed without Complainants’ authorization.11

Pursuant to Sections 1.719 and 64.1150 of our rules,12 we notified QCC of the complaints and QCC responded.13 QCC states that authorization was received and confirmed through third party verifications (TPV) in each case. The Commission’s rules require that the verification elicit, amongst other things, confirmation that the person on the call is “authorized to make the carrier change.” 14 We have reviewed the TPVs that QCC submitted with its responses. In each case, the verifier instead asks the person on the call, “are you older than 18 years of age and authorized in this telephone account?”, but does not elicit confirmation that the person is authorized to make a carrier change.15 As we emphasized in the Fourth Report and Order, “any description of the carrier change transaction…must not be misleading” and verifiers should convey explicitly that “the consumers will have authorized a carrier change, and not for instance an upgrade in existing service.”16 We find that QCC’s actions were in violation of our carrier change rules, and we discuss QCC’s liability below.17
5.
QCC must remove all charges incurred for service provided to Complainants for
the first thirty days after the alleged unauthorized changes in accordance with the Commission’s liability rules.18 We have determined that Complainants are entitled to absolution for the charges incurred during the first thirty days after the unauthorized changes occurred and that neither the Complainants’ authorized carrier nor QCC may pursue any collection against Complainants for those charges.19 Any charges imposed by QCC on the subscribers for service provided after this 30-day period shall be paid by the subscribers to their authorized carrier at the rates the subscribers were paying to their authorized carriers at the time of the unauthorized changes of telecommunications service providers.20
6.
Accordingly, IT IS ORDERED that, pursuant to Section 258 of the
Communications Act of 1934, as amended, 47 U.S.C. § 258, and Sections 0.141, 0.361 and

12
47 C.F.R. § 1.719 (Commission procedure for informal complaints filed pursuant to Section 258
of the Act); 47 C.F.R. § 64.1150 (procedures for resolution of unauthorized changes in preferred carrier).
13See Appendix.
14See 47 C.F. R. § 64.1120(c)(3)(iii).
15Cf. Consumer Telcom, Inc., Order on Reconsideration, 27 FCC Rcd 5340 (CGB 2012) (“the
verifier’s question, “Do you have authority to make changes to your long distance service?” did not confirm that the person was authorizing a change that would result in receiving service from a different carrier”).
16See Fourth Report and Order, 23 FCC Rcd 493 (2008)(emphasis added); see also 47 C.F.R.
§ 64.1120(c)(3)(iii).
17
If any Complainant is unsatisfied with the resolution of this complaint, such Complainant may
file a formal complaint with the Commission pursuant to Section 1.721 of the Commission’s rules, 47 C.F.R. § 1.721. Such filing will be deemed to relate back to the filing date of such Complainant’s informal complaint so long as the formal complaint is filed within 45 days from the date this order is mailed or delivered electronically to such Complainant. See 47 C.F.R. § 1.719.
18See 47 C.F.R. § 64.1160(b).
19See 47 C.F.R. § 64.1160(d).
20See 47 C.F.R. §§ 64.1140, 64.1160.
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Federal Communications Commission

DA 13-517

1.719 of the Commission’s rules, 47 C.F.R. §§ 0.141, 0.361, 1.719, the complaints filed against Quasar Communications Corporation, ARE GRANTED.
7.
IT IS FURTHER ORDERED that, pursuant to section 64.1170(d) of the
Commission’s rules, 47 C.F.R. § 64.1170(d), Complainants are entitled to absolution for the charges incurred during the first thirty days after the unauthorized change occurred and neither the QCC nor the authorized carriers may pursue any collection against Complainants for those charges.
8.
IT IS FURTHER ORDERED that this Order is effective upon release.
FEDERAL COMMUNICATIONS COMMISSION
Nancy A. Stevenson, Deputy ChiefConsumer Policy DivisionConsumer & Governmental Affairs Bureau
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